{"id":17223,"date":"2019-10-16T00:39:22","date_gmt":"2019-10-16T04:39:22","guid":{"rendered":"https:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/how-a-life-settlement-strategy-could-help-shield-nest-eggs\/"},"modified":"2019-10-16T00:39:22","modified_gmt":"2019-10-16T04:39:22","slug":"how-a-life-settlement-strategy-could-help-shield-nest-eggs","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2019\/10\/16\/how-a-life-settlement-strategy-could-help-shield-nest-eggs\/","title":{"rendered":"How a life-settlement strategy could help shield nest eggs"},"content":{"rendered":"\n
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While retirees are often advised to maintain an emergency fund large enough to cover six to 12 months of living expenses, it may be worthwhile for them to consider an alternative option to fulfill sudden needs for liquidity.<\/p>\n

\u201cFor retirees, financial setbacks, especially those due to health-related problems, are always a real and present danger,\u201d said Robin Weinberger, director of national accounts and Peter Katz, co-director of national accounts with Life Insurance Settlements Inc.<\/p>\n

In a piece published in ThinkAdvisor<\/em>, the two highlighted that an unexpected financial need becomes especially problematic during a down market. They pointed to recent episodes of volatility in the stock market, as well as predictions of recession advanced by many analysts.<\/p>\n

\u201cSimilarly, other investment markets like bonds and real estate can also be depressed at any moment in time,\u201d they said.<\/p>\n

The combination of a down market and a critical cash need could require retirees to liquidate part of their retirement nest egg. Doing that with traditional investment portfolio assets would cause them to lock in losses from downturns, putting their long-term financial security at risk.<\/p>\n

To avoid such painful decisions, many retirement planners recommend that their clients keep an emergency fund invested in money-market accounts. But another option, according to Weinberger and Katz, is to explore a life settlement for life insurance policies that may have become unwanted, unneeded, or unaffordable.<\/p>\n

\u201cLife settlement values are, for the most part, uncorrelated to stock, bond and real estate markets,\u201d they said, stressing the potential for retirees to avoid selling assets at depressed values.<\/p>\n

They also noted that a life settlement fetches a greater amount than the cash surrender value for a given policy. They added that the transaction ends the future premium burden, providing additional relief from a cash-flow perspective.<\/p>\n

\u201cThis is a good time to point out that it\u2019s usually a good idea for your clients to have more than one life insurance policy,\u201d the duo said. Insurers typically will not allow a single universal life policy with a US$2-million face amount to be split up, leaving policy holders to decide whether they\u2019ll keep it all or sell it all. But with two life-insurance policies each worth US$1 million, they\u2019ll have the flexibility to sell only a portion of their coverage.<\/p>\n

\u201cThis added flexibility is potentially a big win for your clients,\u201d they said.<\/p>\n

Read the original article at https:\/\/www.lifehealthpro.ca\/rss\/ <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

While retirees are often advised to maintain an emergency fund large enough to cover six to 12 months of living expenses, it may be worthwhile for them to consider an alternative option to fulfill...<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/17223"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=17223"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/17223\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=17223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=17223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=17223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}